Meta halted a second wave of Project OT cuts on May 19, 2026, after laying off approximately 8,000 employees, or about 10% of its global workforce, and reallocating around 7,000 others to AI-related roles. In a June company-wide memo, Mark Zuckerberg accepted responsibility for miscalculations during the AI transition and said no further company-wide layoffs were expected for the rest of 2026. Project OT, short for Organization Transformation, contemplated reducing team sizes by as much as 60%, alongside hiring freezes, performance exits and role consolidations. The initiative faced employee resistance and weaker-than-expected productivity gains, while Meta projected $125 billion to $145 billion in 2026 capital expenditures, most of it for AI infrastructure and chips.